Mainzeal receivers mull best way to sell Victoria St building

The receivers of failed construction firm Mainzeal are weighing up their options to get the best price for Mainzeal House on Auckland’s Victoria St.

PwC’s Colin McCloy and David Bridgman “are currently considering the best way to realise the property,” which is valued at some $12.3 million, according to their first report on 200 Vic Ltd, a Mainzeal entity. The building housed Mainzeal’s operation and outdoor equipment retailer Kathmandu as a secondary tenant.

The receivers said they have secured the property and collected rent and operating expenditure amounts from Kathmandu, and has kept on two ex-Mainzeal staff on a contract basis to help with the maintenance of the building.

Bank of New Zealand, who called in receivers to the Mainzeal group earlier this year, is owed $9.6 million by 200 Vic. That’s the bulk of the $11.3 million outstanding to BNZ as first ranking secured creditor of the group. The company also owes $2.8 million to related Mainzeal party.

PwC’s McCloy and Bridgman released their first report on Mainzeal Property & Construction and Mainzeal Living this week, showing the group owes $70 million to unsecured trade creditors, of which $51.7 million is accounts payable and $18.3 million in retentions held.

Employees are owed $5.2 million and the Inland Revenue Department is likely owed $600,000, and there are contingent liabilities including $33.5 million in contractor bonds.

Liquidators have been appointed to the commercial construction sector player Mainzeal Group, less than a month after one of its primary trading arms, Mainzeal Property & Construction, was placed in receivership.

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